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The Information Technology Center

Commission on Audit, Philippines

Introduction

There is no doubt that the future of auditing is founded primarily on computers and the rapid development of information technology. Having realized this fact, the top management of the Philippines Commission on Audit (COA) led by Chairman Eufemio C. Domingo, took an innovative and critical step to prepare the Commission for the future. The initial step undertaken was the organization and establishment of an Information Technology Center (ITC) - an innovatory approach towards greater public accountability and accessibility within the environment of fast-paced technological developments. Hence, the Commission adopted a Resolution dated August 10,1990 and committed itself to:

• Build a corps of state auditors more adept at fulfilling their constitutional mission;
• Assist government agencies in developing more responsive public financial management systems, thereby strengthening the mechanism for responsible and democratic governance;
• Streamline internal systems and procedures as well as organizational and functional structures towards more economical and effective audit operations;
• Progress through information technology researches, development of quality control techniques and standards, and conduct of information systems training programs.

Organization of ITC.

At present, there exists in the Commission three divisions that converge on the subject matter of computerization and common needs for systems training, standardization and technology researches. The three divisions are the Computer Audit Group (CAG) in the Chairman's Office, the Electronic Data Processing (EDP), and the Systems and Consultancy Division (SCD) in the Planning, Finan­cial and Management Office. The complementarities and divergencies in terms of functional overlaps and commonality of areas of concern among the three divisions constituted the core of the ITC.

Objectives and Scope

The objectives of the Center is expressed in terms of the five basic functions it undertakes:

• Computer Audit
• In-house Electronic Data Processing
• Systems Consultancy Services
• Consultancy Contracts Review
• Technical Research and Development Services

More specifically, the ITC :

• Conducts systems study and design including computer program development, listing and maintenance and implementation of in-house computerized operations;
• Conducts general controls and applications review of computerized information systems of government agencies;
• Assists in the conduct of regular audits of agencies under computerized accounting environment;
• Provides systems consultancy services to government agencies on such as are related to government accounting and auditing;
• Reviews and recommends appropriate action on consultancy contracts referred to the Center;
• Provides technical support on software development techniques, software and hardware research, and on monitoring quality of sys­tems designs, operations, systems efficiency and documentation;
• Develops information systems standards and techniques; and assists in the design, development and conduct of manual and computerized information systems training programs.

The operationalization of these objectives and functions, resulted in the re­structuring of the ITC into five services, namely :

• Information Systems Audit Services
• Information Systems Development Services
• Systems Consultancy Services
• Consultancy Contracts Review
• Services Technical Research and Development Services

Functional Linkages

The ITC may also be viewed in terms of the target beneficiaries of its outputs and results. Broadly categorized, the ITC intends to service the internal COA organization and the Commission's varied clientele. These functional linkages are described as follows:

Inter-COA Linkages

• The assistance by the Information Systems Audit Services in the regular audits of COA operating offices;
• The direct concern of Information Systems Development Services for in-house requirements of all COA offices;
• The referrals and requests from operating offices for review of ac­counting and auditing related consultancy contracts and proposals to the Consultancy Contracts Review Services;
• The inputs of technical researches, and computer training programs of the Technical Research and Development Services to different COA Offices;
• The participation of operating and support offices in the consultancy engagements as members of the review panel for project outputs or by active membership in the Project Team.

External Linkages

• The direct contact of the computer auditors, contract reviewers and systems consultants with the client agencies;
• The client agencies as beneficiaries of results of technology researches.

Structure of ITC.

Consistent with the identified areas of similarities and interdependence in the actual operations of the ITC, the internal organization of the Center observes a flexible project-based structure. This is a three-level organizational structure with a Director at the head, chiefs of the five functional services at the middle and the Project Teams at the base line.

The project organization is determined by the nature of the engagement with the collective representation of the involved services. The organization consists of a pool of freelance supervisors, leaders and staff. Each team has at least a Project Supervisor, Project Leader and Project Staff. The administrative and production crew are attached with the Director.

Conclusion

A concerted effort of the Commission is necessary to get the ITC through the first stage of development. There should be a united effort on the part of all offices in the Commission to properly guide the direction of the project, since the ITC is clearly the best and most appropriate and timely response, the Commission can offer to the needs of an already computerized community.

A flexible and systematic plan of action is essential to the realization of the perceived functions and objectives of the ITC especially if we take into consideration all the services the Center has to offer.

Firstly, in the area of Information Systems Audit Services, the Center should fully utilize the resident auditing units in the conduct of the computer audit. It should optimize the utilization of the experiences of the auditors in their own work assignments and ensure the usual cooperation of the audited agency. Also, the Center should make an appraisal of the existing in-house capability and the possible measures to obtain the competence required of auditors.

Second, in the area of Information Systems Development Services, the Center should have a complete control of all aspects of management planning, financial audit reporting as well as technical audit reporting.

Third, in the area of Systems Consultancy Services, the Center should ensure the effective and efficient delivery of consultancy services. Moreover, the Center should check from time to time whether the tools and techniques being used in various consultancy engagements are compatible with the local social environment. Ultimately, the Center should aim at entering the international arena through INTOSAI and ASOSAI.

Fourth, in the area of Consultancy Contracts Review Services, the Center should try to give proper solutions to the issues pertaining to accounting/ auditing-related engagements.

Finally, in the area of Technical Research and Development Services, the Center should ensure competent equipment management and a responsive and organized system of documentation as well as sufficient hardware/software technical support.

The Information Technology Center catalyzes the continuing professional advancement of an auditor through education, particularly enhancing his computer literacy which is necessary for the proper discharge of his audit functions in a computerized environment. It challenges the COA community to utilize all the potentials it has to offer since it promises a timely, accurate and relevant system in disseminating information in a nation where a rapidly growing population demands a more efficient and vigilant public service.